A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,800. The company calls these bonds a a price of $98,000 the gain or loss on retirement is: Multiple Choice $0 gain or loss. $2,800 gain. $2,800 loss.

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,800. The company calls these bonds a a price of $98,000 the gain or loss on retirement is: Multiple Choice $0 gain or loss. $2,800 gain. $2,800 loss.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3PB: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What...

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Question

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,800. The company calls these bonds a
a price of $98,000 the gain or loss on retirement is:
Multiple Choice
$0 gain or loss.
$2,800 gain.
$2,800 loss.

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